Men, as evaluating all these factors at the same time is a bit challenging, there are some different strategies for pricing like cost-based pricing, premium pricing, penetration pricing or such other strategies. This post will be about cost-based pricing and how to apply it withPrisync‘s Dynamic Pricing Module.

Cost-based pricing is simply adding a certain percentage or amount of markup to your products’ internal costs to find your prices. This is the simplest methods among different pricing strategies to find which level a product should be priced at. See the example below.

Product Cost: $160

Profit Margin Goal: 25%

Sales Price: 160 + (160*25/100) = $200

Så, $200 is our minimum sales price that satisfies our target profit margin. Besides this, you can also take into the calculation of your competitors’ prices in the market to see if this is really the best price that you can have. Till exempel, if your cheapest competitor sells this product at $239, I think you shouldn’t wait at $200 as you have an opportunity to increase your prices until $238 by still staying the cheapest and having more profit. Let me explain, how to apply these strategies thanks to our Dynamic Pricing Module.

Dynamisk prissättning modul

With this module, you’re also able to add your product costs to your products that you track in yourPrisync konto. See it how a product cost looks like in your dashboard.

To see how to add your cost to your products, please watch this quick video:

After adding your costs to your products, it’s time to find yourSmartPricesbased on your costs, dina konkurrenter’ prices and your target profit margins. You can easily set the pricing rules in Dynamic Pricing page. In this page, you can firstly pick up the product range that you want to apply your pricing rule and then create your rule.

The rule can be based on just your competitors’ prices or both your costs and your competitors’ priser. Let’s get started with the first one which is simpler. Så, to set up a rule based on just your competitors’ priser, you have three options like;

-my price should be equal tothe cheapest, genomsnitt eller the highestprice in the market.

Till exempel, if you have a price-match promise to your customers and want to keep them happy, Du kan ställa in en regel som my price should be equal to the cheapest. (Se den nedan)

Apart from this, you can also include your costs and your target profit margins to the rules to find smarter prices for your products. För detta, you can pick up the first option and create your rule. Till exempel, you can define a rule like;

My price should be lower 2% than cheapest of my competitors but it shouldn’t be lower than my cost + 20% vinstmarginal. (Se den nedan)

After setting up your rules, you can immediately see the effects of these rules underSmartPrice Live View Sectionand if the SmartPrices that the system suggests make sense for you, you can save the rule and start seeing the SmartPrices in the products page, in your excel reports and also in your API.

We have also a quick video which covers our Dynamic Pricing Module:

Att summera, with our Dynamic Pricing Module, you can apply a cost-based pricing strategy and find the SmartPrices for your products. You can also connect these outputs into your internal systems via our API and even have a fully automated re-pricing system! If you’re interested in building such mechanism, you can try for free all these features for 14 days from here!